Method and apparatus for authorizing a payment via a remote device

ABSTRACT

A method of and system for authorizing a transaction remotely is disclosed. A customer uses a computer to browse for a product displayed on the internet. The customer may enter a unique number into the computer. The unique number is authorized and an authorization code is sent to the customer&#39;s communication device. The customer enters the authorization code into the computer to complete the transaction.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims priority to and the benefit of U.S. ProvisionalPatent Application No. 61/108,730, filed Oct. 27, 2008, the disclosureof which is now incorporated herein by reference.

FIELD OF THE INVENTION

The present invention relates generally to remote communications, andmore specifically to remote electronic authorization of payment for aproduct.

BACKGROUND OF THE INVENTION

It is known to receive content over a remote or mobile device. Forexample, a user may receive news stories on a cell phone, personal dataassistant (PDA), or computer. So, too, a good or service or otherproduct may be offered for sale by a vendor to a customer through anelectronic catalog such as for example over the Internet. The customermay use mobile cellular telephone to browse the Internet for the desiredproduct and receive premium rate mobile terminating text messagesdetailing pricing information of the product. Payment information,payment authorization and confirmation data are transmitted between thecustomer's mobile cellular telephone and the vendor server. One exampleof such a system is described in U.S. patent application Ser. No.11/824,607, filed Jun. 29, 2007, and published on Jan. 1, 2009, as US2009/0006217, the disclosure of which is now incorporated herein byreference. Payment may be charged to the customer's telephone account orto a credit card or debit account in the event the telephone subscriberline cannot be validated as disclosed in U.S. Pat. No. 7,080,049, datedJul. 18, 2006, and U.S. Pat. No. 7,527,194, dated May 5, 2009, thedisclosures of each of which are now incorporated herein by reference.What is needed is a method and system that is more secure while reducingtransaction fees and settlement times.

SUMMARY OF THE INVENTION

The present invention may comprise one or more of the following featuresand combinations thereof.

A method of authorizing a transaction comprising the steps of: accessinga transaction site, entering a personal identification number into arequest authorization field associated with the transaction site,transmitting an authorization code, and entering the authorization codeinto an authorization field associated with the transaction site.

The method may further comprise the step of selecting a transaction.Such a transaction may comprise purchasing an item or gaining access toa restricted site.

The method may further comprise the step of authorizing a userassociated with the personal identification number to complete theselected transaction. For example a background check and/or a creditcheck may be conducted on the user associated with the personalidentification number entered into the request authorization field.

The method may further comprise the step of charging the user forcompleting the transaction.

The method may further comprise the step of providing a notice oftransaction completion.

Illustratively, at least one of the steps may be accomplished on aremote device. So, too, each of the steps may be accomplished on aremote device. Such a remote device may chosen from the list consistingof a mobile phone, a computer, and a personal data assistant. The sameor a different remote device may be used for one or more of the steps.

The personal identification number may comprise the user's mobiletelephone number.

The authorization code may comprise a PIN code.

Any or all of the steps may be performed in a secure environment. Forexample and without limitation, the transmission of the personalidentification number, the transmission of the authorization code, thetransmission of payment information and the like may all be encrypted.

A user may be offered an incentive to provide information to “link” toone or more payment accounts other than their phone carrier. For exampleand without limitation a credit card account, a bank account, a PayPalaccount, a brokerage account, a virtual reality account, or otherfinancial services account. This incentive illustratively may be offeredafter completing an SMS carrier-based transaction. In the example of aPayPal account, the user would require the user to enter their PayPalusername and password into a PayPal-hosted web page and agree to abilling agreement, which effectively gives the processing server theright to bill that user's PayPal account at will without the user'songoing permission.

Incentives, for example and without limitation incentive points, may beawarded to the user to incentivize linking to payment accounts otherthan their phone carrier accounts. For example and without limitationincentive points may be awarded when a user makes a purchase, when auser links to an account other than their phone carrier account, or whena user refers a new user who completes a transaction. These incentivepoints illustratively may be used to purchase a product.

A method of authorizing a transaction comprises the steps of: displayingto a customer on a computer a product offered for sale on a productserver, the computer and the server each being in communication with aninternet; choosing for purchase via the computer the product at aselected price; sending the computer a request authorization fieldinviting the customer to enter an identification number uniquelyassociated with the customer; entering the unique identification numberinto the request authorization field; verifying the identificationnumber; transmitting an authorization code to a communication deviceassociated with the customer via the unique identification number;entering the authorization code into an authorization field displayed onthe computer; verifying the authorization code; and charging the priceto an account associated with the customer.

A computer program product including a medium readable by a processor,the medium carrying instructions which, when executed by the processor,cause the processor to carry out the invention.

Also disclosed is a transaction authorization system comprising meansfor carrying out the invention.

These and other objects of the present invention will become moreapparent from the following description of the illustrative embodiment.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 depicts an illustrative method for authorizing a transaction overan internet;

FIG. 2 depicts an illustrative system for authorizing a transaction; and

FIG. 3 depicts another illustrative method for authorizing atransaction.

DESCRIPTION OF THE ILLUSTRATIVE EMBODIMENTS

For the purposes of promoting an understanding of the principles of theinvention, reference will now be made to a number of illustrativeembodiments illustrated in the drawings and specific language will beused to describe the same.

Referring to the Figures, an illustrative method 10 of authorizing atransaction via a remote device 201, 20 is depicted. Illustratively, auser or customer may use a remote device, such as for example a computer201, to locate a transaction, for example the viewing and purchasing ofa product (for example a good or a service) for sale, on a site on theInternet 101. It will be appreciated that other remote devices, such asfor example a communication device such as for example a cellular phone20, a smart phone, or a personal digital assistant (PDA) or the like mayalso be used. The transaction site may be hosted on a machine incommunication with the Internet. For example one or more computers orservers 111, which may be seller, product, transaction or vendorserver(s), may be in communication with the Internet 101 and may displayone or more products for sale at one or more respective price points orprices 21 to a customer(s) 102 also in communication with the Internetvia a web browser on a computer such as for example browsing computer201. One or more additional computers or servers 204, whichillustratively may be authorizing or processing server(s), may also bein communication with the Internet. The processing server illustrativelymay be in communications with one or more telephone networks 203, whichin turn are in communication with one or more communication devices 20,such as for example cellular phone 20. It will be understood that theproduct servers and the processing serves may be one in the same. Itwill further be appreciated that a mobile communication device 20 mayhave both mobile telephone capabilities with connection or communicationwith mobile telephone network(s) 203 and computing capabilities withconnection or communication with the Internet 101. The communicationdevice 20 could comprise a smart phone of a PDA.

A customer may choose a product displayed on the product server 111 forpurchase at a certain or selected price 21. The customer illustrativelywill be prompted or invited to enter an identification number uniquelyassociated with the customer. For example, an invite payment window 22Amay open and direct the user to enter their cellular phone number orother authorization code into a request authorization field 23. As knownto those skilled in the art, cell numbers may be associated with a user.For example, a subscriber identity module (SIM) card is a smart cardthat may contain user account information. Plugging a SIM card into amobile phone, such as for example a global system for mobile (GSM)communications phone programs that phone for use and stores thereon themobile station or mobile subscriber integrated services digital network(MSIDN) or telephone number. GSM also provides for short messagingservice (SMS), which provides text messages to be sent to/from a GSMphone. Illustratively, that mobile phone number or MSIDN, or otherauthorization code, may be associated with the user's personallyidentifiable information, for example their credit and financial data,which illustratively may be accessed to see if the person has therequisite wherewithal to enter into the transaction. In the case of theexemplary purchase, for example, it may be determined whether the personhas sufficient credit, sufficient payment history, sufficient incentivepoints, or sufficient real or virtual funds or other relevant criteriato purchase the product at the selected price point 21. Of course,determining the credit-worthiness or ability to pay of the user is notrequired. In any event, the customer may type their phone number orother identification number onto this site in the request authorizationfield 23 to initiate the exemplary machine-hosted transaction, such asfor example a purchase of a product, at a certain price point 21. If itis determined, for example by the processing server 204, that the useror customer is authorized to make the purchase at the price 21, then anauthorization code, for example a PIN code 31A, will be sent to theuser's communication device, for example cellular phone 30, or othermobile or remote device, through for example text messaging (for exampleand without limitation, short message service or silent messagingservice each commonly known as “SMS”) 31. The system may provideinstructions 31B along with the PIN code 31A. For example, the textmessage may tell the user to enter the PIN code 31A on the web tocomplete the purchase. Illustratively, the user can type the PIN code31A into an authorization field 24 on a confirmation page 22B on thecustomer's computer 201 in order to proceed with the transaction. Forexample, after typing in the PIN code 31A, the user illustratively mayclick on the “Pay Now” button 26 or other equivalent execution button orlink displayed on computer 201. The system 10, for example theprocessing server 201, illustratively may then charge the user. Suchcharges may be based on the user's preferences, which for example may bestored in the user's profile, or which could be selected by the user atthe time of the transaction. Such preferences illustratively couldinclude for example and without limitation charging or billing the user:through the user's carrier on their cellular phone bill; through one ormore of their credit card accounts (if the user associated their phonenumber with their credit card number(s)); through the user's financialinstitution, such as for example a bank checking account (if the userassociated their phone number with their checking account) or other bankaccount, or credit union account, or securities broker or dealeraccount, or insurance account, or an e-commerce money transfer account,such as for example and without limitation a PayPal account, and thelike. Illustratively, the system may provide a notice of completion 25of the transaction for example by presenting another text window 22C onthe computer 201. It will be appreciated that each of the steps may beaccomplished on a single remote device. For example, a user could accessa web site on their PDA or phone 20 remote device. So, too, a computer201, could be used for all steps, as in the case where the user has aninternet phone account, such as a Skype phone. The user could entertheir personal identification number, for example the phone number ofthe PDA/smart phone 20 or Skype phone, or other remote device into thesite's request authorization field 23, and the authorization code 31Acould be sent to that same, or a different, remote device 20. The usercould then enter the authorization code 31A into the authorization fieldon the previously accessed site on that same remote device 20 in orderto complete the transaction. It will further be understood that themethod is applicable to other than purchases. For example, and withoutlimitation, the method could be used to request, authorize and grantaccess to restricted sites, physical locations and the like. Forexample, the authorization code sought could be an access code todisable a building alarm, or to gain access to a proprietary web site.

A user may be offered an incentive to provide information to “link” toone or more payment accounts other than their phone carrier. For exampleand without limitation a credit card account, a bank account, a PayPalaccount, a brokerage account, a virtual reality account, or otherfinancial services account. This incentive illustratively may be offeredafter completing an SMS carrier-based transaction. In the example of aPayPal account, the user would require the user to enter their PayPalusername and password into a PayPal-hosted web page and agree to abilling agreement, which effectively gives the processing server 204 theright to bill that user's PayPal account or other selected account atwill without the user's ongoing permission. Incentives, for example andwithout limitation incentive points, may be awarded to the user toincentivize linking to payment accounts other than their phone carrieraccounts. For example and without limitation incentive points may beawarded when a user makes a purchase, when a user links to an accountother than their phone carrier account, or when a user refers a new userwho completes a transaction. These incentive points illustratively maybe used to purchase a product. Incentives could also take the form ofvirtual currency or points for use in on-line virtual games such as forexample and without limitation Second Life or Mafia Wars.

In the illustrative embodiment 110 of FIG. 3, the customer again chooses34 a price point 21. Illustratively, after a customer enters theidentification number, for example a cellular number or MSISDN 35, thesystem would use the entered number to determine 36 if the user alreadyhas any incentive points. If the customer has enough incentive points tocover the selected price point, then the customer will be asked 37 if itwould like to redeem the points to purchase the product. If the customeranswers yes, then a PIN will be sent 38 illustratively via SMS. Thesystem will confirm 39 the PIN and complete 41 payment by deductingincentive points from the user's account as described with other paymentmethods above.

In the event the user either does not have sufficient incentive pointsto cover the selected price point, or does not desire to redeemincentive points to cover the selected price point, the system 10 mayask the user or customer how it would like to pay for the product. Ifthe customer would like to use carrier based billing, then the cellularcarrier will be billed. If the customer would like to use anotheraccount as described above, then that account will be used. Incentives,for example real or virtual currency or points, may be provided toencourage the user to choose one account over the other as desired. Forexample, the system may determine whether the customer has a PayPalaccount 42. If so, then the system will determine if use of PayPal isauthorized 43. If so, then the PayPal account will be billed 44. If not,for example if the selected price is too high for the account, then thecustomer will be prompted to retry 45, by for example and withoutlimitation choosing a different price or adding money to the account 46.If it is determined at step 42 that the customer is not linked to aPayPal account, then the system may determine if the price point cansupport standard PSMS, or credit card or debit card billing 48 andcomplete the transaction accordingly 49. If not, then the customer maybe prompted 50 to retry for example at a lower price or by linking to aPayPal account or other account with sufficient funds.

The invention illustratively may be carried out by a suitable computerprogram or programs including a medium readable by a processor as knownto those skilled in the art.

While the invention has been illustrated and described in detail in theforegoing drawings and description, the same is to be considered asillustrative and not restrictive in character, it being understood thatonly illustrative embodiments thereof have been shown and described andthat all changes and modifications that come within the spirit of theinvention are desired to be protected.

1. A system for authorizing a transaction comprising: a memory storingat least an identification number uniquely associated with a customerand an authorization code associated with the transaction; and aprocessor configured to: display to a customer on a computer a productoffered for sale on a product server, the computer and the server eachbeing in communication with an internet; receive a request for purchasevia the computer the product at a selected price; send the computer arequest authorization field inviting the customer to enter anidentification number uniquely associated with the customer; receive,from the customer, the unique identification number entered into therequest authorization field; verify the identification number; transmitan authorization code to a communication device associated with thecustomer via the unique identification number; receive, from thecustomer, the authorization code entered into an authorization fielddisplayed on the computer; verify the authorization code; offer thecustomer an incentive to charge the purchase to an account other than acustomer's cellular phone carrier account; select an account associatedwith the customer to charge the purchase from a plurality of customeraccounts; and charge the price to the selected account associated withthe customer.
 2. The system of claim 1 wherein the identification numbercomprises the customer's cellular phone number.
 3. The system of claim1, wherein the authorization code comprises a personal identificationnumber.
 4. The system of claim 1, wherein the communication devicecomprises a cellular phone.
 5. The system of claim 1, wherein thecommunication device is chosen from the list comprising a cellularphone, a smart phone, and a personal data assistant.
 6. The system ofclaim 1, wherein the processor is further configured to transmit theauthorization code over a cellular phone network.
 7. The system of claim1, wherein the account to be charged is the customer's phone carrierbill and wherein the processor is further configured to charge theselected account by adding the price of the product to the customer'scellular phone carrier bill.
 8. The system of claim 1, wherein theplurality of customer accounts comprises a cellular phone carrieraccount, a credit card account, a debit account, a checking account, asavings account, a brokerage account, an insurance account, ane-commerce money transfer account, an incentive points account, avirtual points account, and a virtual currency account.
 9. The system ofclaim 1, wherein the processor is further configured to offer ane-commerce money transfer account.
 10. The system of claim 1, whereinthe processor is further configured to provide a notice of transactioncompletion.
 11. The system of claim 1, wherein the processor is furtherconfigured to perform steps in a secure environment.
 12. Anon-transitory computer readable storage medium readable by a processor,the medium carrying instructions which, when executed by the processor,cause the processor to: display to a customer on a computer a productoffered for sale on a product server, the computer and the server eachbeing in communication with an internet; register a customer's chosenproduct for purchase via the computer at a selected price; send thecomputer a request authorization field inviting the customer to enter anidentification number uniquely associated with the customer; verify theidentification number entered by the customer; transmit an authorizationcode to a communication device associated with the customer via theunique identification number; receive the authorization code from thecustomer; verify the authorization code received from the customer;offer the customer an incentive to charge the purchase to an accountother than a customer's cellular phone carrier account; select anaccount associated with the customer to charge the purchase from aplurality of customer accounts; and charge the price to the selectedaccount associated with the customer.
 13. The non-transitory computerreadable storage medium of claim 12, wherein the authorization codecomprises a personal identification number.
 14. The non-transitorycomputer readable storage medium of claim 12, wherein the communicationdevice is chosen from a list comprising a cellular phone, a smart phone,and a personal data assistant.
 15. The non-transitory computer readablestorage medium of claim 12 wherein the identification number comprisesthe customer's cellular phone number.
 16. The non-transitory computerreadable storage medium of claim 15, wherein the authorization code istransmitted over a cellular phone network.
 17. The non-transitorycomputer readable storage medium of claim 15, wherein the account to becharged is the customer's phone carrier bill and wherein the price ofthe product is added to the customer's cellular phone carrier bill. 18.The non-transitory computer readable storage medium of claim 15, whereinthe plurality of customer accounts comprises a cellular phone carrieraccount, a credit card account, a debit account, a checking account, asavings account, a brokerage account, an insurance account, ane-commerce money transfer account, an incentive points account, avirtual points account, and a virtual currency account.
 19. Thenon-transitory computer readable storage medium of claim 15, wherein thecustomer is offered an incentive to charge the purchase to thee-commerce money transfer account.